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Licemer1 [7]
2 years ago
5

A customer has requested that Lewelling Corporation fill a special order for 2,600 units of product S47 for $31 a unit. While th

e product would be modified slightly for the special order, product S47's normal unit product cost is $20.70: Direct materials $ 6.20 Direct labor 3.00 Variable manufacturing overhead 3.30 Fixed manufacturing overhead 8.20 Unit product cost $ 20.70 Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product S47 that would increase the variable costs by $1.80 per unit and that would require an investment of $16,000.00 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be:
Business
1 answer:
inysia [295]2 years ago
4 0

Answer:

$27,420

Explanation:

The computation of the annual financial advantage or disadvantage for the company is shown below:

Incremental revenue (2,600 units × $31) $80,600

Incremental cost  

Direct material (2,600 units × $6.20) $16,120

Direct labor  (2,600 units × $3) $7,800

Variable manufacturing overhead  (2,600 units × $3.30) $8,580

Additional variable cost  (2,600 units × $1.80) $4,680

Special molds  $16,000

Total incremental cost $53,180

Incremental profit (loss)     $27,420

We simply deduct the all incremental cost from the incremental revenue so that the incremental profit or loss could come

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Answer: Free Standing display Unit.

Explanation:

Free standing display units( FSDU), also known as Floor Standing Display Units are cost effective ways used to showcase a product, they are noticeable ways of advertising by placing a brand in such a manner or position that will be most attractive to customers or target customers. Such brands are specifically placed in customer's way, FSDU are special customized display units that can be easily made from cardboards or other materials which can be formex stands.

3 0
3 years ago
A company produces alternators for cars. They generally use a static budget with the following costs based on 8,000 units per mo
Daniel [21]

Answer:

$70,875

Explanation:

By definition, a flexible budget is when a budget has been adjusted or flexed to accommodate the changes in the level of activity.

If the company wanted to create a flexible budget for 9,000 units, then the value that would be recorded for variable costs will be:

Indirect materials, $22,000/8000*9000 = 24,750;

Indirect labor, $25,000/8000*9000 = 28,125 ;

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Supervision, $4,000/8000*9000=4,500

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3 0
3 years ago
Bina Co. purchased a vehicle on January 1st for $15,000 and estimates it will use the vehicle for eight years with a $3,000 salv
zhuklara [117]

Using the double  declining-balance depreciation method,  the vehicle's second year depreciation expense is: $2,812.50.

<h3>Second year depreciation expense </h3>

First step is to calculate the first  year depreciation expense

First  year depreciation expense=15,000×(100%/8 x 2)

First  year depreciation expense=15,000 x 25%

First  year depreciation expense=3,750

Second step is to calculate Second year depreciation expense

Second year depreciation expense = (15,000-3750) x 25%

Second year depreciation expense=11,250x 25%

Second year depreciation expense  =2812.50

Therefore  Using the double  declining-balance depreciation method,  the vehicle's second year depreciation expense is: $2,812.50.

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8 0
1 year ago
In a recent speech, the governor of your state announced: "one of the biggest causes of juvenile delinquency in this state is th
Pepsi [2]
<span>A flaw in the governor's reasoning is that a lot of people in that age bracket who are already juvenile delinquents aren't going to stop doing bad things just because they might get paid more at a job. Those people may just not want to have a job and would rather enjoy their youth causing trouble before they have to "settle" into a career.</span>
6 0
3 years ago
Firms making a loss will compare the losses if it shuts down to the losses if it operates in the short run. What quantity will t
Ahat [919]

The quantity that would be produced by a firm that shuts down in the short run is zero units.

<h3>When would a firm shut down in the short run?</h3>

The short run is a period when at least one or more factors of production are fixed and the others are variable. In the short run, if the average variable cost is greater than the price, the firm should cease production. This means that zero units of output would be produced.

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